Life companies pinpoint 'guided sales' threat to IFAs

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Guided sales will pose a threat to independent financial advisers if the proposals in the Retail Distribution Review (RDR) are given the green light, life companies warn.

A study conducted by Focus Solution, published today, suggests more than eight in ten providers believe the concept, a product of the FSA’s bid to split sales and advice, could hit IFA profits. Guided sales refers to those instances where customers participate in a “non-advised” process with the provider which may lead to some choosing to buy a product. The Focus Solutions study, called Focus Quotients and based on results gathered throughout 2007, also found life companies believe the RDR will bring about the end of the commission-only adviser. It suggests life and pensions providers...

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